Unraveling the internal drivers of pharmaceutical company performance in Europe : a DEMATEL analysis

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Asad, Arif Ibne and Popesko, Boris and Godman, Brian (2024) Unraveling the internal drivers of pharmaceutical company performance in Europe : a DEMATEL analysis. Equilibrium. Quarterly Journal of Economics and Economic Policy, 19 (2). pp. 661-702. ISSN 1689-765X (https://doi.org/10.24136/eq.2896)

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Abstract

Research background:Internal business factors are vital to how a company achieves its goals. The present study of internal drivers of pharmaceutical company performance is very insight-ful, as it has the potential to boost further competitiveness, it may allow health authority personnel to have guidelines to make strategic decisions, as well as inspire investor confi-dence, ensure regulatory compliance and performance benchmarking, and support talent acquisition and retention. In addition, it can identify the important internal factors that need to receive more priority. Purpose of the article: The European pharmaceutical industry is currently facing multiple challenges. This paper aims to map the relative relationships among the internal factors that influence the business performance of pharmaceutical companies in Europe by using the DEMATEL approach. Method: There are two phases of the present study, an extensive literature review and the use of the decision-making trial and evaluation laboratory (DEMATEL) technique. To identify the key internal drivers and their cause-and-effect relationship with pharmaceutical company performance in Europe, data from experts were obtained using the predesigned DEMATEL questionnaire. Findings & value added: The extensive literature review from the Web of Science and Scopus databases found that seven internal factors are very demanding in the case of European pharmaceutical business performance. The main elements that have the highest impact on pharmaceutical business performance in Europe are human resources competencies, the information system, technological competitiveness, and the patent system. However, financial profitability, research and development competencies, alliances with other companies, and supply chain management are the factors that are affected more by other factors. The study is the first attempt to identify the internal business performance of the pharmaceutical sector in Europe by working with pragmatic and perceptive decisions from pharmaceutical stakeholders in Europe.

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